Serious Materials

Main line of activity 

Serious Materials develops and manufactures sustainable green building materials that save energy, save money, improve comfort, and aggressively address climate change. 

Details of the founders

Serious Materials was founded in 2002 by Marc Porat and Kevin Surace. 

Kevin Surace serves as the Chief Executive Officer and the President of Serious Materials, Inc. He has over 28 years of engineering, manufacturing, and senior management experience. He joined Serious Materials in 2002. He took over the business from his friend Marc Porat, who was producing soundproof materials for vehicles, namely QuietCar. 

He received his degree in electrical engineering technology from Rochester Institute of Technology where he currently serves on the Board of Trustees, and has been awarded 9 patents. Mr. Surace is chosen as the Entrepreneur of the Year 2009 by the Inc. Magazine. 

Marc Porat currently serves as one of the Board members in Serious Materials and Chairman at Green Cube LLC and ZETA Communities. He received his PhD in Community & Economic Development from the Stanford University in the year 1976. He completed BA Psychology in the Columbia College in 1972. 

Details of their business model and uniqueness of their business 

Serious Materials reduces the green house gas emissions of the built environments by reengineering common products that use or lose the most energy. 

Without replacing the existing glass or altering the exterior appearance of the building, their iWindow technology enables rapid glazing retrofits of commercial buildings at a fraction of the cost compared to full window replacements. 

They sell their products to the wholesale distribution channel which in turn sells to residential and commercials builders. Their products are available nationwide through thousands of local dealers for residential and commercial projects. 

With six manufacturing plants in North America, Serious Materials products have been installed in over 70,000 projects (including the Empire State Building). 

What problem did the business solve? 

The ‘built environment’ is responsible for 52% of greenhouse gas emissions worldwide. Five percent of all U.S. energy is lost through inefficient windows alone. Super-insulating windows on the market, like Serious Windows, can reduce heating and cooling use up to 50% (Serious Materials prospectus) 

Previously, window replacement or retrofits have often not been highly cost-effective due to cost and performance of the windows. Highly-insulating, low-cost window technologies like Serious Windows make replacements and retrofits cost-effective in many applications, including in public buildings and in low income weatherization. 

Retrofitting existing buildings is a cost-effective way to increase energy efficiency. Mass production of windows with energy-saving features such as coatings and gas insulating layers. 

Key market segments (end users) 

Their projects have been implemented in commercial office buildings, schools and university campuses, residential buildings, government facilities, retail operations and factories. 

For instance, Serious Materials’ technology is implemented in the renovation the Empire State Building. Their energy efficiency technology for windows was used in the high-profile retrofitting of the Empire State Building.  In that project, Serious Materials replaced 96 percent of the building’s 6,514 windows, rebuilding them using the original panes of glass but adding in spacers, a gas fill and a layer of coated film. 

Serious Materials was able to triple the window performance while using the existing 425 tons of glass and preventing them from hitting the landfill. The $20 million energy retrofit project, primarily funded by energy and operational savings, is expected to reduce energy use by up to 38 percent, cut energy costs by $4.4 million annually, and reduce carbon dioxide emissions by 105,000 metric tons over the next 15 years according. 

The energy efficiency technology of windows (iWindow) used in the Empire State Building is now being sold for commercial properties. 

Key reasons for their success

Serious Materials manufactures building materials and energy software and services that save money, reduce America’s energy use and dependence on foreign oil, reverse climate change and create new sustainable green-collar jobs across North America. 

People there do full vertical research and development in eco-friendly building materials, through which they come up with products which save energy and money. 

Serious Materials redesigned the gypsum drywall process, which emits about 20 billion pounds of CO2 annually. The EcoRock drywall reduces the emissions by 80%. They started the R & D in 2006 and they came up with the product in 2009. 

Serious Energy Manager provides low cost solutions to save 10% - 15% energy savings with 1 - 2 years payback. 

When was their major inflection point? 

In 2007, the company received $50 million from New Enterprise Associates, Foundation Capital and Rustic Canyon Partners to build new factories in the U.S. 

In 2009, Serious Materials closed $60 million in Series C financing, which brought Serious Materials’ total raised capital to more than $120 million. The company has raised about $132 million funding so far. 

 The American Recovery and Reinvestment Act of 2009 granted funds of nearly $13.6 billion towards housing programs, aimed at energy efficiency. This act promoted the market of green building materials. Serious Materials formed a government sales group to exploit such opportunities. Without using the federal money the company increased the revenue 50% in 2010. Their annual sales in 2010 were between $40 million and $50 million. 

They moved into building energy management tools in 2010, with the acquisition of Valence Energy, which spun out of Santa Clara University. 

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